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Clamping down on an unauthorised real estate investment scheme, Sebi today ordered MVL Ltd and its directors to repay investors in three months while restricting them from further raising money from public.
The company and its directors have also been barred from accessing the capital markets "for a period of four years".
MVL had solicited fund from public in respect of its real estate project -- 'India Business Centre' -- at Gurgaon. Assuring returns to investors, the company had allegedly raised about Rs 66 crore from investors.
The Securities and Exchange Board of India (Sebi) found that the collective investment scheme (CIS) was run without obtaining the certificate of registration from the regulator.
In a ruling today, Sebi asked seven directors of MVL to "wind up the existing Collective Investment Schemes and refund the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this order".
Following this, they have to submit a winding up and repayment report including the trail of funds claimed to be refunded, bank account statements indicating refund, within a period of 15 days with Sebi.
Further, the company and its directors have been directed to "abstain from collecting any money from the investors or launch or carry out any CIS including the schemes which have been identified as a CIS in this order".
Additionally, MVL and its directors cannot dispose off or sell any of the assets of the company except for the purpose of making refunds to its investors.
They are also required to immediately submit the complete and detailed inventory of the assets owned by the company.
According to Sebi, if MVL and its directors fail to refund investors within the prescribed time they would be immediately restrained from accessing the stock market till all the company's schemes are wound up and investors are paid.
Besides, a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the company would be made by Sebi, while the regulator would also start attachment and recovery proceedings against the company in case it fails to comply with its directions.
The company's directors against whom the order has been issued are -- Prem Adip Rishi, Praveen Kumar, Rakesh Gupta, Vinod Malik, Vinod Kumar Khurana, Vijay Kumar Sood and Kalpana Gupta.